Signal Technology Announces Receipt of $6.5 Million Radar Power Conversion System Contract; Future Additional Production Awards and Options Could Exceed $3 Million

Business Wire, Dec 5, 2002

Business/Technology Editors

DANVERS, Mass.--(BUSINESS WIRE)--Dec. 5, 2002

Signal Technology Corporation (Nasdaq: STCO) today announced that Microwave Electronic Systems, Inc. (MiKES), Ankara, Turkey, has released a contract to Signal Technology for the design and manufacture of high-voltage power conversion systems for the Signal Processing Electronic Warfare (SPEWS-II) radar warning and jamming system. SPEWS II is an improved version of the radar warning and jamming system deployed on the Turkish-manufactured F-16 aircraft. The contract value is in excess of $6.5 million, and Signal Technology estimates that future additional production awards and options could exceed $3 million.

"We have a proud history of excellent relationships with MiKES," said Signal Technology Chairman and Chief Executive Officer George Lombard. "With this contract release, we have surpassed our goal of achieving $100 million in bookings for 2002."

President and Chief Operating Officer John Cotumaccio said, "Signal Technology is widely recognized as a leader in designing and manufacturing sophisticated power management systems for electronic warfare applications on military aircraft. This leadership not only stems from the quality of our technology, but also from our record of consistently delivering products that meet our customers' requirements within budget and on time. We look forward to extending this record of performance in our relationship with MiKES."

About Signal Technology Corporation

Signal Technology is a leader in developing state-of-the-art electronic components, subsystems and system solutions for defense and space applications. The Company manufactures a wide range of RF, microwave and millimeter wave products, power conversion systems and power supplies. These devices are used in military communications networks, and systems related to electronic countermeasures, precision guidance, radar, intelligence, surveillance and reconnaissance. The Company sells its products to defense prime contractors worldwide. For further information about Signal Technology, please visit the Company's Web site at www.sigtech.com.

Safe Harbor Statement

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: The statements made in this news release that are not historical facts contain forward-looking information that involves risks and uncertainties. These forward-looking statements include statements regarding Signal Technology Corporation's realization of more than $6.5 million in revenue associated with a radar power conversion system development and production contract from Microwave Electronic Systems, Inc.; the Company's realization of an additional $3 million or more in future production awards and options associated with this contract; and certain other statements identified or qualified by words such as "likely", "will", "suggests", "may", "would", "could", "should", "expects", "expected", "anticipates", "estimates", "plans", "projects", " projected", "believes", "is optimistic about", or similar expressions (and variants of such words or expressions). Important factors that may cause actual results to differ include, but are not limited to, future demand for the Company's products, risks associated with court proceedings and litigation, fluctuations in the Company's operating results, volume and timing of orders received, changes in the mix of products sold, competitive pricing pressure, the Company's ability to meet or renegotiate customer demands, the ability to anticipate changes in the market, the Company's ability to finance its operations on terms that are acceptable, the Company's ability to attract and retain qualified personnel including the Company's management, changes in the global economy, changes in regulatory processes, the dependence on certain key customers (including the U.S. government), the Company's ability to realize sufficient margins on sales of its products, the availability and timing of funding for the Company's current products and the development of future products and other risks detailed from time to time in the company's Securities and Exchange Commission filings. Signal Technology Corporation assumes no obligation to update the information included in this news release.